Investing.com-- Global space technology stocks rose on Wednesday, tracking a premarket rally in SpaceX Corp (NASDAQ:SPCX) after the U.S. rocket firm clocked bumper third-quarter earnings.
EchoStar jumped nearly 5% in premarket trading by 06:43 ET (10:43 GMT), while AST SpaceMobile and Rocket Lab gained more than 2% each. Intuitive Machines rose around 3%, while Planet Labs added 1.6%.
In Europe, Eutelsat surged nearly 8%, and OHB SE jumped 6.9%. SES DRC added 2.2%.
The moves followed gains in Asian space stocks, with Mitsubishi Heavy Industries, Ltd. (TYO:7011) and Mitsubishi Electric Corp (TYO:6503), which are closely tied to Japan's space program, rising 1% and 1.9%, respectively, while rocket engine component maker IHI Corp. (TYO:7013) rose 1.3%.
Satellite maker SKY Perfect JSAT Corporation (TYO:9412) rose 2.6%, while space tech startup Astroscale Holdings Inc (TYO:186A) jumped 5.7%. Japanese space stocks were also encouraged by the country launching a high-profile mission to a moon of Mars.
In South Korea, Hanwha Aerospace Co Ltd (KS:012450) and Hanwha Systems Co Ltd (KS:272210) rose 1.9% and 5.2%, respectively.
SpaceX supplier Shenzhen Sunway Communication (SZ:300136) rose 1.2%.
The group tracked an aftermarket rally in SpaceX, with the rockets and artificial intelligence company adding nearly 10% after its third-quarter earnings handily beat estimates.
SpaceX posted its first-ever quarterly profit as a public company.
The print was fueled chiefly by SpaceX's AI and Starlink satellite communications unit. Starlink is by far SpaceX's biggest profit earner, with the rocket maker outlining plans to aggressively ramp up its U.S. and global satellite communications offerings.
A rapid expansion in satellite demand bodes well for components and communication equipment makers such as SKY Perfect, China Satellite Communications, and Sunway.
SpaceX's earnings also helped improve sentiment towards broader space stocks by showing how the sector's largest company could turn growth into profit.
Following the report, Citi opened a 90-day positive catalyst watch on SpaceX shares, citing six factors: a track record of beats and raises expected to continue into the fourth quarter, Flight 15 as a potential major space-industry catalyst for reusability, dollar-per-watt economics trending above consensus, an accelerating Grok model release cadence, and possible year-end detail on SpaceX's power-generation and mobile strategies.
"We've described Buy-rated SPCX as being in the midst of a catalyst-rich 2-3 year arc and we see the next 2-3 months in particular as uniquely catalyst rich even within that timeline that supports our positive investment thesis," Citi analysts said.
Vahid Karaahmetovic contributed to this report.
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